Xchange Secures Funding of $20.5M

The Boston maker of CRM software says the financing will help the
company achieve profitability in the fourth quarter.

Exchange Applications Inc. (NASDAQ: EXAP), a Boston maker of customer relationship management software now doing business as Xchange Inc., announced $20.5 million in convertible debt financing from several investors.

The public company, which was hit with a shareholder lawsuit earlier this year on charges that it improperly inflated a quarterly revenues statement, said the funding "will provide long-term financial stability and reinforce (its) leadership position in the analytical CRM market."

The company said it aims for break-even earnings before interest, taxes and other charges in the fourth quarter. "Securing this financing allows us to devote 100 percent of our attention to the
execution of our current business plan," said Xchagne President and CEO Chris Wagner. "We are excited about this strong endorsement from our investors
and remain committed to reaching break even on an EBITDA basis next quarter."